(Bloomberg) — China’s goal of putting more electric cars on the highway is proving a bonanza for that South Korean tycoon.
Huh Chin-kyu, the 77-year-old founder and chairman of Seoul-based Iljin Group, happens to be his country’s latest billionaire as a result of improving demand for services to the firm’s copper coils, a key ingredient of rechargeable batteries utilized in electric vehicles. The company’s Iljin Materials unit has posted a Fifteen percent jump in adjusted revenue since adding Warren Buffett-backed BYD Co., China’s biggest electric-carmaker, for a customer in 2019.
“Supplying to the number-one player in China for three years is a premium factor for Iljin,” said Han Byung-hwa, an analyst at Eugene Investment and Securities in Seoul. The company’s market price has quadrupled to around 2 trillion won ($1.8 billion) since 2019.
Huh’s value, this includes his family’s stakes inside firm’s other units, has swelled to $1.1 billion, in line with the Bloomberg Billionaires Index. An Iljin Materials spokesman declined to talk about the valuation.
China was crowned the world’s largest sell for electric vehicles in 2019 after sales there greater than doubled. Global sales of of new-energy vehicles, or NEVs, are anticipated to build to 11 million in 2025 from 1.A million recently, with China accounting for almost 50 % of that total, in line with Bloomberg New Energy Finance.
The Xi Jinping government will need Chinese automakers to earn NEV credits akin to 10 % of annual sales starting the coming year, which often can mean more business for Iljin.
The company is constructing a new copper foil plant in Malaysia designed to expand its production capacity by 10,000 tons annually and make it supply other Chinese clients, including battery maker Contemporary Amperex Technology Co., Han said. Before acquiring BYD as being a customer, Iljin Materials primarily catered to South Korean firms such as Samsung (KS:005930) SDI Co., that provides batteries to automakers including Volkswagen (DE:VOWG_p) AG and BMW AG.
Huh, who studied metallurgical engineering at Seoul National University, started a compact foundry right in front yard of his house in 1968 with 300,000 won investment. The corporation has 45 affiliated units and combined revenue of 2.3 trillion won, as per the spokesman.
“If you’d like to come up with a short money, visit med school or law school,” Huh said with the company’s 50th anniversary celebration in January. “But if you ought to make a bunch of money and bring about the country’s development, go study engineering.”
Huh is in court recently after he is discovered to obtain hidden about $13 million within the offshore shell company, based on local media reports. He was ordered to fork out a good of 700 million won and, good company spokesman, doesn’t prefer to appeal the verdict.